Powell says we’re ‘a long way’ from neutral on interest rates, indicating more hikes are coming – EMERGING MARKET – should embrace for stronger dollar and weaker exotics currencies like peso and etc.
- Federal Reserve Chairman Jerome Powell said the central bank is “a long way” from getting rates to neutral, a fresh sign that he believes more hikes are coming.
- The Fed’s ultra-accommodative policy to bring the economy out of the Great Recession is no longer needed, he added.
- The euro hit its highest level since Aug. 21 during Powell’s comments. Read More @ https://www.cnbc.com/2018/10/03/powell-says-were-a-long-way-from-neutral-on-interest-rates.html
WHAT IS THE USD INDEX SAYING?
USD is confirmed at the upward direction to the north after breaking the bearish Head & Shoulder – clear breakout and more upside tomorrow as we are expecting a great NFP data. FED chairman buried all currencies after his comments of more rate hike ahead.
TODAYS NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES.
- 9.30am – Australian Trade balance – expected to be good.
- 4.30pm – Housing equity withdrawal – Change in the total value of new home-secured loans that are not used for home purchases or improvements. expect little or no movement.
- 9.15pm – FOMC member speaks – expect volatility in favor of the USD.
- 10.00pm – Canada will release their Ivey PMI – ‘s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy – expected to be good.
The market will be cautious today as all await for tomorrow NFP data release; market is expected to be volatile and we advise traders to be cautious with their money management.
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